Will Federal Regulators Step Up to Protect Consumers from SoLo Funds?
Payday predator seeks comeback in California, DC
The payday predators over at SoLo Funds — home of the 4000% APR loan — are making a comeback in DC and California.
Jason Mikula at Fintech Business Weekly reports on the relatively mild penalties paid by SoLo in DC and California and then asks and important question: Will the Consumer Financal Protection Bureau (CFPB) step up and take action to protect consumers nationally?
SoLo Funds, recently named to CNBC’s Disruptor 50 list, has reached settlements with California and Washington, DC, for operating without necessary licenses, charging illegally high interest rates disguised as “tips” and “donations,” and engaging in deceptive practices.
The actions come a year after the company was hit with a cease and desist order in Connecticut and a citation from Minnesota’s regulator for operating as a collections agency without proper licensing and more than two years after the risks of SoLo Funds’ business model were…
